However, last week the highly regarded GfK market research firm’s survey of British consumers showed the sharpest fall in consumer confidence since 1994.

Howard Archer, chief economist at research group IHS Global, said: ‘A plunge in consumer confidence and evidence of markedly reduced business sentiment since the Brexit vote has enhanced the case for interest rates to be cut as soon as Thursday.’

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Carney, who is one of the nine voting members of the MPC, has also said that other measures might be needed in the next few months.

Most economists believe there could be more quantitative easing – involving the Bank buying Government bonds to inject cash into the economy.

However, such additional measures may not be considered for implementation until next month when the Bank issues its quarterly inflation report and will have a clearer view on the state of the economy after the Brexit vote.

A cut in interest rates this week will benefit mortgage holders with tracker mortgages, but standard variable rates may not move so fast as a lower interest rate will make it harder for banks to keep pace without the risk of wiping out their profits.